The reason why i decided to make my trading journal public, is lack of discipline.
Let me explain briefly.
I got in to trading on July 6 2015, i went through a cycle which i believe many of you have gone through starting with complete and utter fascination and the “OMG this is the best thing in the history of the universe” attitude. Read a ton of books and god knows how many hours of useless and useful trading videos.
And after 4 years of being completely immersed in all of this, i believe i can start a demo account for at least 6 months, and after that, if all goes well, go live.
Note: i have gone live before, lost about 20% of my account, and decided to go back to the old drawing board again. But, the problem as always is emotional or psychological, rather then not having adequate trading knowledge.
Anyway, last week i opened a trade, and after a few days of sideways price action, i noticed that i actually entered at a major resistance point. This was the breaking point for me.
I have to be accountable to someone or something, mostly to myself. So the best way to avoid embarrassing rookie mistakes like that is by recording my thought process and all my decisions and making them public. I am hoping this will make me more disciplined.
As far as how and what do i trade.
I am purely going to use technical analysis on longer time frames.
I’ve been through multiple trading systems, and so far Hector De Ville’s is the one that resonates with me the most, so that is the thing i am using and applying.
For those of you familiar with his work, he has a couple of different trading strategies. I am going to be using 2 of them.
- Part Time Trading
- 3 SMA trend following system.
The Part Time Trading system is based on diagonal and horizontal levels of S/R on long term time frames (D, W, M). Basically we either get a breakout or a bounce, and i will be using specific candlestick formations to base my entries on.
The 3 SMA trend following system can be used on any time frame, but since i truly believe that long term trading can be just as, if not even more profitable than day trading, here also i will search for trends starting from 4H all the way up to the monthly time frame.
On each position i am risking 3% of my account, except in more risky situations, where i will either cut down on my trading size, or use other tricks to reduce my risk.
Any kind of opinion would be more then welcomed, since this is the first time i am sharing my trading journal.
On the next post i will share my current watchlist, the current positions i have open, and what was my reasoning behind this,